The measures have been proposed as additional taxes on certain financial institutions
Proposed federal taxes on certain financial institutions could generate $5.3 billion in the next five years, according to two new reports from the parliamentary budget officer (PBO).
Those mooted taxes include the Canada Recovery Dividend, a one-time 15% windfall tax on profits made by banks and life insurers during the COVID-19 pandemic, and a proposed permanent increase to the corporate taxes paid by banks and life insurance groups.
The former would generate $3 billion, according to the PBO, while a planned hike to bank and insurance profits over $100 million – from 15% to 16.5% – could produce $2.3 billion in the next five years.
The estimates were made in the Additional Tax on Banks and Life Insurers report, authored by Rolande Kpekou Tossou and Caroline Nicol, and the Canada Recovery Dividend study by the same authors.
The federal government noted in its April budget that those two measures were forecast to raise more than $6 billion.